Wednesday, September 1, 2010

* Apple TV Only Provides Content From Two Broadcasters

* Apple Keeps about 30 cents of $ 1 EACH rental - sources 

* Media companies fear loss of pricing control 

By Jennifer Saba and Yinka Adegoke 

NEW YORK, Sept 1 (Reuters) - Apple Inc (AAPL.O) introduced a new version of Apple TV is bothered from Wednesday with just two Networks, underscoring ITS struggles to win over a media industry Worried about Losing control over the pricing of the ITS Programs. 

The new $ 99 Apple TV will Allow the user to rent TV Shows such as "Glee" and "Modern Family" for 99 cents thanks to Partnerships with Walt Disney Co's (DIS.N) ABC and News Corp's (NWSA.O) Fox [ID: nN31268065]. 

But monetize mutch media conglomerates, Including General Electric Co's (GE.N) NBC Universal, CBS Corp (CBS.N), Viacom Inc (VIAb.N), are notably absent from the roster. 

Among Chief Concerns in the entertainment industry are the terms Apple is seeking for rental deals, According to monetize media Executives familiar with the Matter. In discussions of ITS, They think, Apple is waiting for it deals including allow That'll keep it Thurs 30 PERCENT of the rental fee. 

That revenue-sharing breakdown is Thurs Similar agreements Apple has Struck for movie and TV show downloads from iTunes. But Executives point out That iTunes downloads are priced at $ 1.99 to $ 2.99 and say They are hesitant Thurs replicate hmmmm Prices of deals at 99 cents. 

"Steve Jobs' thing is if me lower the price point we'll sell more stuff," said one media executive close to the talks. 

Another said: "This is a plan That is Designed to sell iPads, iPods and iPhones. It is not a plan That is Designed to appropriately value content." 

Still, Analysts Believe mutch media companies feel pressured Thurs Might strike deals if the 99-cent rental proves popular with the Consumers. What is more, Apple Co-Founder Steve Jobs has Been proved right before in forcing through business models for media companies, In particular with the music business. 

As for the media companies, They worry They find Themselves Zapraszamy Zapraszamy company as the book and music industries struggling Thurs COPE with a downward spiral is pricing. 

Ever Core analyst Alan Gould, in a note, wrote: "Getting the consumer Used to a 99 cent price for a TV show (rental or sale) and a Further empowering Apple as the '800 pound gorilla '... is unwise." 

Another industry-watcher, Larry Haverty, a portfolio manager Gabelli funds Ken owns media Stocks, Said Even the current iTunes download deals have not have likely failed Thurs significantly help the bottom line for entertainment companies. 

"My guess Is that the revenue streams from the Existing $ 1.99 downloads Are not Particularly Significant," said Haverty. 

Viacom, CBS and NBC declined comment Thurs. 

When it was random Thurs 1999 cent rentals, Another major sticking point well that was Broadcasters and Producers will worry the rentals Further Undermine DVD sales. In the past, They have made millions of dollars licensing Entire series and Packaging Them into DVD sets.

"We do not think of as an episodic TV with pay-per-view model is what wakes up 99 cents rental is," one of the media Executives Said, Ken spoke on the condition of anonymity Because of the sensitivity of talks with Apple.

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